Fourth Quarter 2023 Highlights
- Earnings from continuing operations per diluted share (EPS) of
$0.86 and adjusted EPS of $0.90.
- Core year-over-year sales growth of 5% and core year-over-year
backlog growth of 8%.
- Year-over-year growth in operating profit from continuing
operations of 38%, and year-over-year growth in adjusted operating
profit from continuing operations of 14%.
- Introducing 2024 adjusted EPS guidance of $4.55-$4.85
reflecting 10% growth compared to 2023 adjusted EPS.
- Declaring first quarter 2024 dividend of $0.205 per share, and
raising the annual dividend by 14% to $0.82 per share.
- Demonstrated significant progress on capital deployment and
acquisition strategy with the October 2023 acquisition of Baum
lined piping GmbH and the January 2024 acquisition of Vian
Enterprises, Inc.
Crane Company ("Crane," NYSE: CR) today announced its financial
results for the fourth quarter of 2023 and provided guidance for
2024.
Max Mitchell, Crane's President and Chief Executive Officer,
stated: “Crane delivered yet another impressive quarter, with
continued evidence of differentiated execution and accelerating
results from growth initiatives. Throughout the year, we had strong
operational performance across all businesses with 2023 financial
highlights including record adjusted segment operating margins at
Process Flow Technologies of 19.9%, a record backlog of $701
million at Aerospace & Electronics, and 7% core sales growth
driving a 28% increase in adjusted operating profit from continuing
operations.”
Mr. Mitchell added: “During the fourth quarter, we also made
additional progress on our capital deployment plans with the
previously announced acquisition of Vian Enterprises by our
Aerospace & Electronics segment, following the October Process
Flow Technologies acquisition of Baum lined piping GmbH. Both
acquisitions meet all of our strategic and financial criteria, and
both strengthen our product and technology portfolio. We have a
robust pipeline of similar M&A opportunities that we will
continue to pursue in 2024, and we are confident that we will
continue to drive shareholder value creation through further
capital deployment.”
Mr. Mitchell concluded: “We remain very excited about our
opportunities and prospects in the quarters and years ahead. Our
outlook for 2024 reflects our strong positioning and the momentum
we are seeing across our businesses balanced with continued mixed
demand signals in certain industrial markets. Consistent with our
customary convention, our initial 2024 adjusted EPS guidance of
$4.55-$4.80 reflects what we have confidence in delivering, and
reflects solid 10% adjusted EPS growth at the midpoint. We believe
there may be potential upside to that range from further easing of
Aerospace & Electronics supply chain constraints, stronger than
expected demand at Process Flow Technologies, and further capital
deployment options.”
Fourth Quarter 2023 Results From Continuing
Operations
Fourth quarter 2023 GAAP earnings from continuing operations per
diluted share (EPS) was $0.86, and adjusted EPS was $0.90.
Fourth quarter sales increased 10%, with 5% core sales growth, a
3% benefit from the Baum acquisition, and a 1% benefit from
favorable foreign exchange. Operating profit from continuing
operations of $67 million increased 38% from $49 million in the
prior year. Adjusted operating profit from continuing operations of
$75 million increased 14% from the prior year.
Summary of Fourth Quarter 2023 Results from Continuing
Operations
Fourth Quarter
Change
(unaudited, dollars in millions)
2023
2022
$
%
Net sales
$
533
$
486
$
47
10
%
Core sales
26
5
%
Baum acquisition
15
3
%
Foreign exchange
5
1
%
Operating profit
$
67
$
49
$
18
38
%
Adjusted operating profit*
$
75
$
65
$
9
14
%
Operating profit margin
12.6
%
10.0
%
260bps
Adjusted operating profit margin*
14.0
%
13.5
%
50bps
*Please see the attached Non-GAAP
Financial Measures tables
Cash Flow, Financing Activities and Other Financial
Metrics
During the fourth quarter of 2023, cash provided by operating
activities from continuing operations was $160 million, capital
expenditures were $13 million, and free cash flow (cash provided by
operating activities less capital spending) was $147 million.
Adjusted free cash flow (free cash flow excluding
transaction-related cash outflows) was $152 million. (Please see
the attached non-GAAP Financial Measures tables.)
As of December 31, 2023, the Company's cash balance was $330
million with total debt of $249 million.
Subsequent to the end of the fourth quarter, on January 2, 2024,
the Company borrowed $100 million under its existing revolving
credit facility, and on the same day, the Company completed the
acquisition of Vian Enterprises, Inc. for approximately $103
million on a cash-free and debt-free basis.
Rich Maue, Crane Executive Vice President and Chief Financial
Officer, added: "Following the Vian acquisition, our net debt to
EBITDA is less than 0.1x. That very low leverage level, paired with
consistently robust free cash flow generation, gives us substantial
financial flexibility for further capital deployment. We are very
pleased with the progress we have made to date with the integration
of both the Baum and Vian transactions, further reinforcing our
lengthy track record as a successful acquirer. We will deploy our
capital with the same strict financial and strategic discipline
that we have always employed, and we see numerous opportunities for
similar value-creating acquisitions to further accelerate our
growth, with the ability to generate enhanced returns given our
lengthy track record of successful acquisition integration and
synergy generation."
Fourth Quarter 2023 Segment Results
All comparisons detailed in this section refer to operating
results for the fourth quarter 2023 versus the fourth quarter
2022.
Aerospace & Electronics
Fourth Quarter
Change
(unaudited, dollars in millions)
2023
2022
$
%
Net sales
$
213
$
181
$
31
17
%
Operating profit
$
43
$
36
$
7
20
%
Adjusted operating profit*
$
43
$
37
$
6
15
%
Operating profit margin
20.2
%
19.8
%
40bps
Adjusted operating profit margin*
20.2
%
20.6
%
(40bps)
*Please see the attached Non-GAAP
Financial Measures tables
Sales of $213 million increased 17% compared to the prior year.
Operating profit margin of 20.2% increased 40 basis points from
last year, primarily reflecting higher volumes, productivity, and
the non-repeat of certain repositioning expenses, partially offset
by higher engineering expense. Adjusted operating profit margin of
20.2% declined 40 basis points from last year. Aerospace &
Electronics' order backlog was $701 million as of December 31, 2023
compared to $613 million as of December 31, 2022, and $678 million
as of September 30, 2023.
Process Flow Technologies
Fourth Quarter
Change
(unaudited, dollars in millions)
2023
2022
$
%
Net sales
$
272
$
252
$
20
8
%
Core sales
(1
)
—
%
Foreign exchange
5
2
%
Baum acquisition
15
6
%
Operating profit
$
43
$
37
$
6
16
%
Adjusted operating profit*
$
46
$
41
$
5
13
%
Operating profit margin
16.0
%
14.8
%
120bps
Adjusted operating profit margin*
17.0
%
16.1
%
90bps
*Please see the attached Non-GAAP
Financial Measures tables
Sales of $272 million increased 8%, driven by a 6% benefit from
the Baum acquisition a 2% benefit from favorable foreign exchange,
partially offset by slightly negative core growth. Operating profit
margin increased 120 basis points to 16.0% driven by strong pricing
and productivity, partially offset by lower volumes and unfavorable
mix. Adjusted operating profit margin increased 90 basis points to
17.0%. Process Flow Technologies order backlog was $379 million at
December 31, 2023 compared to $369 million as of December 31, 2022,
and $353 million as of September 30, 2023. Order backlog at
December 31, 2023 included $12 million related to the Baum
acquisition.
Engineered Materials
Fourth Quarter
Change
(unaudited, dollars in millions)
2023
2022
$
%
Net sales
$
49
$
52
$
(4
)
(7%)
Operating profit
$
5
$
6
$
(1
)
(22%)
Adjusted operating profit*
$
5
$
6
$
(2
)
(27%)
Operating profit margin
9.3
%
11.0
%
(170bps)
Adjusted operating profit margin*
9.3
%
11.8
%
(250bps)
*Please see the attached Non-GAAP
Financial Measures tables
Sales of $49 million decreased 7% compared to the prior year.
Operating profit margin declined 170 basis points to 9.3%. Adjusted
operating profit margin declined 250 basis points to 9.3%.
Introducing 2024 Guidance
We are introducing full year 2024 EPS guidance in a range of
$4.55-$4.85, and free cash flow (operating cash flow less capital
expenditures) guidance of $240-$265 million.
Key assumptions for our guidance include:
- Sales of approximately $2.25 billion, up 8% compared to 2023
driven by core sales growth of approximately 3% to 5% (10% at
Aerospace & Electronics, and flat at Process Flow Technologies
and Engineered Materials) and an acquisition benefit of
approximately 4% (4.5% at each Aerospace & Electronics and
Process Flow Technologies).
- Operating margins of approximately 20.1%
- Corporate cost of ~$75 million
- Net non-operating expense of ~$20 million
- Tax rate of ~23.5%
- Diluted shares of ~58 million
Additional details of our outlook and guidance are included in
the presentation that accompanies this earnings release available
on our website at www.craneco.com in the "investors" section.
Declaring First Quarter Dividend
Crane's Board of Directors has declared a 14% increase in the
Company's quarterly dividend, to $0.205 per share, from $0.18 per
share. The regular quarterly dividend of $0.205 per share for the
first quarter of 2024 is payable on March 13, 2024 to shareholders
of record as of February 29, 2024.
Additional Information
Crane Company operated as part of Crane Holdings, Co. for the
entire first quarter of 2023 prior to completion of the separation
transaction on April 3, 2023. Crane Holdings, Co.'s (now renamed
Crane NXT, Co.) results are now reflected as the historical results
of Crane Company, with the Payment & Merchandising Technologies
segment presented as discontinued operations. Certain current year
year-to-date and prior year quarterly and year-to-date non-GAAP
information is not presented due to this change in reporting
methodology.
Conference Call
Crane has scheduled a conference call to discuss the fourth
quarter financial results on Tuesday, January 30, 2024 at 10:00
A.M. (Eastern). All interested parties may listen to a live webcast
of the call at www.craneco.com. An archived webcast will also be
available to replay this conference call directly from the
Company’s website under Investors, Events & Presentations.
Slides that accompany the conference call will be available on the
Company’s website.
About Crane Company
Crane Company has delivered innovation and technology-led
solutions to its customers since its founding in 1855. Today, Crane
is a leading manufacturer of highly engineered components for
challenging, mission-critical applications focused on the
aerospace, defense, space and process flow industry end markets.
The Company is comprised of two strategic growth platforms,
Aerospace & Electronics and Process Flow Technologies, as well
as the Engineered Materials segment. Crane has approximately 7,000
employees in the Americas, Europe, the Middle East, Asia and
Australia. For more information, visit www.craneco.com.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements include all statements that are not historical
statements of fact and those regarding our intent, belief, or
expectations, including, but not limited to: statements regarding
Crane’s portfolio composition and its relationship with Crane NXT,
Co. following the business separation; benefits and synergies of
the separation transaction; strategic and competitive advantages of
Crane; future financing plans and opportunities; and business
strategies, prospects and projected operating and financial
results. We caution investors not to place undue reliance on any
such forward-looking statements.
Words such as “anticipate(s),” “expect(s),” “intend(s),”
“believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,”
“seek(s),” and similar expressions, or the negative of these terms,
are intended to identify such forward-looking statements. These
statements are based on management’s current expectations and
beliefs and are subject to a number of risks and uncertainties that
could lead to actual results differing materially from those
projected, forecasted or expected. Although we believe that the
assumptions underlying the forward-looking statements are
reasonable, we can give no assurance that our expectations will be
attained.
Risks and uncertainties that could cause actual results to
differ materially from our expectations include, but are not
limited to: changes in global economic conditions (including
inflationary pressures) and geopolitical risks, including
macroeconomic fluctuations that may harm our business, results of
operation and stock price; the continuing effects from the COVID-19
pandemic on our business and the global and U.S. economies
generally; information systems and technology networks failures and
breaches in data security, theft of personally identifiable and
other information, non-compliance with our contractual or other
legal obligations regarding such information; our ability to source
components and raw materials from suppliers, including disruptions
and delays in our supply chain; demand for our products, which is
variable and subject to factors beyond our control; governmental
regulations and failure to comply with those regulations;
fluctuations in the prices of our components and raw materials;
loss of personnel or being able to hire and retain additional
personnel needed to sustain and grow our business as planned; risks
from environmental liabilities, costs, litigation and violations
that could adversely affect our financial condition, results of
operations, cash flows and reputation; risks associated with
conducting a substantial portion of our business outside the U.S.;
being unable to identify or complete acquisitions, or to
successfully integrate the businesses we acquire, or complete
dispositions; adverse impacts from intangible asset impairment
charges; potential product liability or warranty claims; being
unable to successfully develop and introduce new products, which
would limit our ability to grow and maintain our competitive
position and adversely affect our financial condition, results of
operations and cash flow; significant competition in our markets;
additional tax expenses or exposures that could affect our
financial condition, results of operations and cash flows;
inadequate or ineffective internal controls; specific risks
relating to our reportable segments, including Aerospace &
Electronics, Process Flow Technologies and Engineered Materials;
the ability and willingness of Crane Company and Crane NXT, Co. to
meet and/or perform their obligations under any contractual
arrangements that are entered into among the parties in connection
with the separation transaction and any of their obligations to
indemnify, defend and hold the other party harmless from and
against various claims, litigation and liabilities; and the ability
to achieve some or all the benefits that we expect to achieve from
the separation transaction.
Readers should carefully review Crane’s financial statements and
the notes thereto, as well as the section entitled “Risk Factors”
in Item 1A of Crane’s Annual Report on Form 10-K for the year ended
December 31, 2022 and the other documents Crane and its
subsidiaries file from time to time with the SEC. Readers should
also carefully review the “Risk Factors” section of the information
statement filed as an exhibit to Crane’s registration statement on
Form 10. These filings identify and address other important risks
and uncertainties that could cause actual events and results to
differ materially from those contained in the forward-looking
statements.
These forward-looking statements reflect management’s judgment
as of this date, and Crane assumes no (and disclaims any)
obligation to revise or update them to reflect future events or
circumstances.
We make no representations or warranties as to the accuracy of
any projections, statements or information contained in this
document. It is understood and agreed that any such projections,
targets, statements and information are not to be viewed as facts
and are subject to significant business, financial, economic,
operating, competitive and other risks, uncertainties and
contingencies many of which are beyond our control, that no
assurance can be given that any particular financial projections
ranges, or targets will be realized, that actual results may differ
from projected results and that such differences may be material.
While all financial projections, estimates and targets are
necessarily speculative, we believe that the preparation of
prospective financial information involves increasingly higher
levels of uncertainty the further out the projection, estimate or
target extends from the date of preparation. The assumptions and
estimates underlying the projected, expected or target results are
inherently uncertain and are subject to a wide variety of
significant business, economic and competitive risks and
uncertainties that could cause actual results to differ materially
from those contained in the financial projections, estimates and
targets. The inclusion of financial projections, estimates and
targets in this press release should not be regarded as an
indication that we or our representatives, considered or consider
the financial projections, estimates and targets to be a reliable
prediction of future events.
(Financial Tables Follow)
CRANE COMPANY
Condensed Statements of
Operations Data
(unaudited, in millions, except
per share data)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Net
sales:
Aerospace & Electronics
$
212.8
$
181.5
$
789.3
$
667.3
Process Flow Technologies
271.5
252.0
1,072.8
1,109.4
Engineered Materials
48.6
52.4
224.3
258.3
Total net sales
$
532.9
$
485.9
$
2,086.4
$
2,035.0
Operating
profit:
Aerospace & Electronics
$
42.9
$
35.9
$
159.0
$
120.3
Process Flow Technologies
43.4
37.3
208.5
168.2
Engineered Materials
4.5
5.8
33.4
32.6
Corporate
(23.9
)
(30.4
)
(117.1
)
(120.8
)
Loss on divestiture of asbestos-related
assets and liabilities
—
—
—
(162.4
)
Total operating profit
$
66.9
$
48.6
$
283.8
$
37.9
Interest income
$
1.9
$
0.9
$
5.1
$
3.2
Interest expense
(6.0
)
(5.7
)
(22.7
)
(10.1
)
Gain on sale of business
—
—
—
232.5
Miscellaneous income (expense), net
1.3
(12.7
)
0.8
7.9
Income from continuing operations before
income taxes
64.1
31.1
267.0
271.4
Provision for (benefit from) income
taxes
14.7
(8.7
)
63.2
99.8
Net income from continuing operations
attributable to common shareholders
49.4
39.8
203.8
171.6
Income from discontinued operations, net
of tax
—
57.4
52.1
229.5
Net income attributable to common
shareholders
$
49.4
$
97.2
$
255.9
$
401.1
Earnings per diluted share from continuing
operations
$
0.86
$
0.70
$
3.54
$
3.00
Earnings per diluted share from
discontinued operations
—
1.01
0.91
4.01
Earnings per diluted share
$
0.86
$
1.71
$
4.45
$
7.01
Average diluted shares outstanding
57.6
56.9
57.5
57.2
Average basic shares outstanding
56.9
56.2
56.7
56.4
Supplemental
data:
Cost of sales
$
339.1
$
310.8
$
1,281.4
$
1,321.4
Selling, general & administrative
126.9
126.5
521.2
513.3
Transaction related expenses (a)
6.3
11.9
42.8
48.3
Repositioning related charges, net (a)
1.4
4.9
3.5
8.7
Depreciation and amortization (a)
11.0
9.3
39.3
39.5
Stock-based compensation expense (a)
6.3
5.7
28.2
21.3
(a) Amounts included within Cost of sales
and/or Selling, general & administrative costs.
CRANE COMPANY
Condensed Balance
Sheets
(unaudited, in millions)
December 31,
2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents
$
329.6
$
427.0
Accounts receivable, net
306.4
269.7
Inventories, net
353.1
294.2
Other current assets
101.7
135.1
Current assets of discontinued
operations
—
625.9
Total current assets
1,090.8
1,751.9
Property, plant and equipment, net
270.5
248.3
Other assets
224.6
195.6
Goodwill
747.7
690.9
Long-term assets of discontinued
operations
—
1,504.9
Total assets
$
2,333.6
$
4,391.6
Liabilities and Equity
Current liabilities
Short-term borrowings
$
—
$
399.6
Accounts payable
179.1
179.2
Accrued liabilities
273.7
260.5
Income taxes
14.3
34.2
Current liabilities of discontinued
operations
—
614.7
Total current liabilities
467.1
1,488.2
Long-term debt
248.5
—
Long-term deferred tax liability
37.1
55.3
Other liabilities
220.6
217.2
Long-term liabilities of discontinued
operations
—
726.9
Total liabilities
973.3
2,487.6
Total equity
1,360.3
1,904.0
Total liabilities and equity
$
2,333.6
$
4,391.6
CRANE COMPANY
Condensed Statements of Cash
Flows
(unaudited, in millions)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
Operating activities:
Net income from continuing operations
attributable to common shareholders
$
49.4
$
39.8
$
203.8
$
171.6
Non-cash loss on divestiture of
asbestos-related assets and liabilities
—
—
—
148.9
Gain on sale of business
—
—
—
(232.5
)
Gain on sale of property
—
(2.8
)
—
(2.8
)
Depreciation and amortization
11.0
9.3
39.3
39.5
Stock-based compensation expense
6.3
5.7
28.2
21.3
Defined benefit plans and postretirement
cost
4.2
9.8
11.2
1.0
Deferred income taxes
(24.0
)
9.2
(21.5
)
10.7
Cash provided by (used for) operating
working capital
115.9
83.5
(49.5
)
(30.3
)
Defined benefit plans and postretirement
contributions
(2.2
)
(2.3
)
(18.3
)
(19.0
)
Environmental payments, net of
reimbursements
(0.9
)
(0.4
)
(3.9
)
(5.8
)
Asbestos related payments, net of
insurance recoveries
—
—
—
(29.3
)
Divestiture of asbestos-related assets and
liabilities
—
—
—
(550.0
)
Other
—
(4.8
)
4.3
15.2
Total provided by (used for) operating
activities from continuing operations
159.7
147.0
193.6
(461.5
)
Investing activities:
Payments for acquisitions, net of cash
acquired
(90.5
)
—
(90.5
)
—
Capital expenditures
(13.0
)
(12.6
)
(42.7
)
(37.1
)
Proceeds from sale of business
—
—
—
318.1
Other investing activities
0.1
4.3
0.7
4.3
Total (used for) provided by investing
activities from continuing operations
(103.4
)
(8.3
)
(132.5
)
285.3
Financing activities:
Dividends paid
(10.3
)
(26.4
)
(57.3
)
(105.9
)
Reacquisition of shares on open market
—
—
—
(203.7
)
Stock options exercised, net of shares
reacquired
6.1
13.1
21.8
16.2
Debt issuance costs
(1.5
)
—
(9.0
)
—
Proceeds from term facility
—
—
300.0
—
Proceeds from term facility of
discontinued operations
—
—
350.0
399.4
Repayment of term loans
(1.8
)
—
(450.6
)
—
Distribution of Crane NXT, Co.
—
—
(578.1
)
—
Total (used for) provided by financing
activities from continuing and discontinued operations
(7.5
)
(13.3
)
(423.2
)
106.0
Discontinued operations:
Total provided by operating activities
—
79.4
34.6
309.9
Total used for investing activities
—
(9.1
)
(4.1
)
(21.3
)
Increase in cash and cash equivalents from
discontinued operations
—
70.3
30.5
288.6
Effect of exchange rate on cash and cash
equivalents
7.0
23.3
3.6
(39.4
)
Increase (decrease) in cash and cash
equivalents
55.8
219.0
(328.0
)
179.0
Cash and cash equivalents at beginning of
period (a)
273.8
438.6
657.6
478.6
Cash and cash equivalents at end of
period
329.6
657.6
329.6
657.6
Less: Cash and cash equivalents of
discontinued operations
—
230.6
—
230.6
Cash and cash equivalents of continuing
operations at end of period
$
329.6
$
427.0
$
329.6
$
427.0
(a) Includes cash and cash equivalents of
discontinued operations.
CRANE COMPANY
Order Backlog
(unaudited, in millions)
December 31,
September 30,
June 30,
March 31,
December 31,
2023
2023
2023
2023
2022
Aerospace & Electronics
$
700.9
$
677.9
$
675.1
$
644.8
$
613.1
Process Flow Technologies(a)
379.0
352.9
352.9
363.0
368.8
Engineered Materials
11.3
14.6
14.5
16.8
16.2
Total backlog
$
1,091.2
$
1,045.4
$
1,042.5
$
1,024.6
$
998.1
(a) Includes $11.5 million of backlog as
of December 31, 2023, pertaining to the Baum acquisition.
CRANE COMPANY
Non-GAAP Financial
Measures
(unaudited, in millions, except
per share data)
Three Months Ended December
31,
2023
2022
% Change
$
Per Share
$
(on $)
Net sales (GAAP)
$
532.9
$
485.9
10
%
Adjusted Operating Profit and Adjusted
Operating Profit Margin
Operating profit (GAAP)
$
66.9
$
48.6
38
%
Operating profit margin (GAAP)
12.6
%
10.0
%
Special items impacting operating
profit:
Transaction related expenses
6.3
11.9
Repositioning related charges, net
1.4
4.9
Adjusted operating profit (Non-GAAP)
$
74.6
$
65.4
14
%
Adjusted operating profit margin
(Non-GAAP)
14.0
%
13.5
%
Adjusted Net Income and Adjusted Net
Income per Share
Net income from continuing operations
attributable to common shareholders (GAAP)
$
49.4
$
0.86
Transaction related expenses, net
3.1
0.05
Repositioning related charges, net
1.4
0.02
Impact of pension non-service costs
1.6
0.03
Tax effect of the Non-GAAP adjustments
(3.6
)
(0.06
)
Adjusted net income (Non-GAAP)
$
51.9
$
0.90
Adjusted EBITDA and Adjusted EBITDA
Margin
Net income from continuing operations
attributable to common shareholders (GAAP)
$
49.4
Net income margin (GAAP)
9.3
%
Adjustments to net income:
Interest expense, net
4.1
Income tax expense
14.7
Depreciation
8.9
Amortization
2.1
Miscellaneous income, net
(1.3
)
Repositioning related charges, net
1.4
Transaction related expenses, net
3.1
Adjusted EBITDA (Non-GAAP)
$
82.4
Adjusted EBITDA Margin (Non-GAAP)
15.5
%
Totals may not sum due to rounding
CRANE COMPANY
Non-GAAP Financial
Measures
(in millions, except per share
data)
Twelve Months Ended December
31,
2023
2022
% Change
$
Per Share
$
(on $)
Net sales (GAAP)
$
2,086.4
$
2,035.0
3
%
Adjusted Operating Profit and Adjusted
Operating Profit Margin
Operating profit (GAAP)
$
283.8
$
37.9
*
Operating profit margin (GAAP)
13.6
%
1.9
%
Special items impacting operating
profit:
Loss on divestiture of asbestos-related
assets and liabilities
—
162.4
Transaction related expenses
42.8
48.3
Repositioning related charges, net
3.5
8.7
Adjusted operating profit (Non-GAAP)
$
330.1
$
257.3
28
%
Adjusted operating profit margin
(Non-GAAP)
15.8
%
12.6
%
Adjusted Net Income and Adjusted Net
Income per Share
Net income from continuing operations
attributable to common shareholders (GAAP)
$
203.8
$
3.54
Transaction related expenses, net
39.6
0.69
Repositioning related charges, net
3.5
0.06
Impact of pension non-service costs
4.4
0.08
Interest expense on 364-Day Credit
Agreement related to asbestos transaction
5.9
0.10
Tax effect of the Non-GAAP adjustments
(10.7
)
(0.18
)
Adjusted net income (Non-GAAP)
$
246.5
$
4.29
Adjusted EBITDA and Adjusted EBITDA
Margin
Net income from continuing operations
attributable to common shareholders (GAAP)
$
203.8
Net income margin (GAAP)
9.8
%
Adjustments to net income:
Interest expense, net
17.6
Income tax expense
63.2
Depreciation
33.0
Amortization
6.3
Miscellaneous income, net
(0.8
)
Repositioning related charges, net
3.5
Transaction related expenses, net
39.6
Adjusted EBITDA (Non-GAAP)
$
366.2
Adjusted EBITDA Margin (Non-GAAP)
17.6
%
*Not meaningful
Totals may not sum due to rounding
CRANE COMPANY
Non-GAAP Financial Measures by
Segment
(unaudited, in millions)
Three Months Ended December 31,
2023
Aerospace &
Electronics
Process Flow
Technologies
Engineered Materials
Corporate
Total Company
Net sales
$
212.8
$
271.5
$
48.6
$
—
$
532.9
Operating profit (GAAP)
$
42.9
$
43.4
$
4.5
$
(23.9
)
$
66.9
Operating profit margin (GAAP)
20.2
%
16.0
%
9.3
%
12.6
%
Special items impacting operating
profit:
Transaction related expenses
—
1.3
—
5.0
6.3
Repositioning related charges, net
—
1.4
—
—
1.4
Adjusted operating profit (Non-GAAP)
$
42.9
$
46.1
$
4.5
$
(18.9
)
$
74.6
Adjusted operating profit margin
(Non-GAAP)
20.2
%
17.0
%
9.3
%
14.0
%
Three Months Ended December 31,
2022
Net sales
$
181.5
$
252.0
$
52.4
$
—
$
485.9
Operating profit (GAAP)
$
35.9
$
37.3
$
5.8
$
(30.4
)
$
48.6
Operating profit margin (GAAP)
19.8
%
14.8
%
11.0
%
10.0
%
Special items impacting operating
profit:
Transaction related expenses
—
—
—
11.9
11.9
Repositioning related charges, net
1.5
3.3
0.4
(0.3
)
4.9
Adjusted operating profit (Non-GAAP)
$
37.4
$
40.6
$
6.2
$
(18.8
)
$
65.4
Adjusted operating profit margin
(Non-GAAP)
20.6
%
16.1
%
11.8
%
13.5
%
Totals may not sum due to rounding
CRANE COMPANY
Non-GAAP Financial Measures by
Segment
(in millions)
Twelve Months Ended December 31,
2023
Aerospace &
Electronics
Process Flow
Technologies
Engineered Materials
Corporate
Total Company
Net sales
$
789.3
$
1,072.8
$
224.3
$
—
$
2,086.4
Operating profit (GAAP)
$
159.0
$
208.5
$
33.4
$
(117.1
)
$
283.8
Operating profit margin (GAAP)
20.1
%
19.4
%
14.9
%
13.6
%
Special items impacting operating
profit:
Transaction related expenses
—
1.3
—
41.5
42.8
Repositioning related charges, net
—
3.8
(0.3
)
—
3.5
Adjusted operating profit (Non-GAAP)
$
159.0
$
213.6
$
33.1
$
(75.6
)
$
330.1
Adjusted operating profit margin
(Non-GAAP)
20.1
%
19.9
%
14.8
%
15.8
%
Twelve Months Ended December 31,
2022
Net sales
$
667.3
$
1,109.4
$
258.3
$
—
$
2,035.0
Operating profit (GAAP)
$
120.3
$
168.2
$
32.6
$
(283.2
)
$
37.9
Operating profit margin (GAAP)
18.0
%
15.2
%
12.6
%
1.9
%
Special items impacting operating
profit:
Loss on divestiture of asbestos-related
assets and liabilities
—
—
—
162.4
162.4
Transaction related expenses
—
4.2
3.6
40.5
48.3
Repositioning related charges (gains),
net
1.5
7.0
0.5
(0.3
)
8.7
Adjusted operating profit (Non-GAAP)
$
121.8
$
179.4
$
36.7
$
(80.6
)
$
257.3
Adjusted operating profit margin
(Non-GAAP)
18.3
%
16.2
%
14.2
%
12.6
%
Totals may not sum due to rounding
CRANE COMPANY
Adjusted Free Cash
Flow
(unaudited, in millions, except
per share data)
Three Months Ended December
31,
Twelve Months Ended December
31,
Cash Flow Items
2023
2022
2023
2022
Cash provided by (used for) operating
activities from continuing operations
$
159.7
$
147.0
$
193.6
$
(461.5
)
Less: Capital expenditures
(13.0
)
(12.6
)
(42.7
)
(37.1
)
Free cash flow
$
146.7
$
134.4
$
150.9
$
(498.6
)
Adjustments:
Transaction-related expenses
$
5.0
$
11.9
$
41.5
$
48.3
Asbestos entity sale transaction
—
—
—
550.0
Adjusted free cash flow
$
151.7
$
146.3
$
192.4
$
99.7
Crane Company reports its financial results in accordance with
U.S. generally accepted accounting principles (“GAAP”). This press
release includes certain non-GAAP financial measures, including
adjusted operating profit, adjusted operating margin, adjusted EPS,
Free Cash Flow and Adjusted Free Cash Flow, that are not prepared
in accordance with GAAP. These non-GAAP measures are an addition,
and not a substitute for or superior to, measures of financial
performance prepared in accordance with GAAP and should not be
considered as an alternative to operating income, net income or any
other performance measures derived in accordance with GAAP. We
believe that these non-GAAP measures of financial results
(including on a forward-looking or projected basis) provide useful
supplemental information to investors about Crane Company. Our
management uses certain forward looking non-GAAP measures to
evaluate projected financial and operating results. However, there
are a number of limitations related to the use of these non-GAAP
measures and their nearest GAAP equivalents. For example, other
companies may calculate non-GAAP measures differently or may use
other measures to calculate their financial performance, and
therefore our non-GAAP measures may not be directly comparable to
similarly titled measures of other companies.
Reconciliations of certain forward-looking and projected
non-GAAP measures for post-separation Crane Company, including
Adjusted EPS, and Adjusted segment margin to the closest
corresponding GAAP measure are not available without unreasonable
efforts due to the high variability, complexity and low visibility
with respect to the charges excluded from these non-GAAP measures,
which could have a potentially significant impact on our future
GAAP results. For Crane Company, these forward looking and
projected non-GAAP measures are calculated as follows:
- "Adjusted operating margin" is calculated as adjusted operating
profit divided by sales. Adjusted operating profit is calculated as
operating profit before Special Items which include transaction
related expenses such as professional fees, and incremental costs
related to the separation; and repositioning related charges. We
believe that non-GAAP financial measures that exclude these items
provide investors with an alternative metric that can assist in
predicting future earnings and profitability that are complementary
to GAAP metrics.
- "Adjusted EPS" is calculated as adjusted net income divided by
diluted shares. Adjusted net income is calculated as net income
adjusted for Special Items which include transaction related
expenses such as professional fees, and incremental costs related
to the separation; repositioning related charges; and, the impact
of pension non-service costs. We believe that non-GAAP financial
measures adjusted for these items provide investors with an
alternative metric that can assist in predicting future earnings
and profitability that are complementary to GAAP metrics.
We believe that each of the following non-GAAP measures provides
useful information to investors regarding the Company’s financial
conditions and operations:
- "Adjusted Operating Profit" and "Adjusted Operating Margin" add
back to Operating Profit items which are outside of our core
performance, some of which may or may not be non-recurring, and
which we believe may complicate the interpretation of the Company’s
underlying earnings and operational performance. These items
include income and expense such as: transaction related expenses
and repositioning related (gains) charges. These items are not
incurred in all periods, the size of these items is difficult to
predict, and none of these items are indicative of the operations
of the underlying businesses. We believe that non-GAAP financial
measures that exclude these items provide investors with an
alternative metric that can assist in predicting future earnings
and profitability that are complementary to GAAP metrics.
- "Adjusted Net Income" and "Adjusted EPS" exclude items which
are outside of our core performance, some of which may or may not
be non-recurring, and which we believe may complicate the
presentation of the Company’s underlying earnings and operational
performance. These measures include income and expense items that
impacted Operating Profit such as: transaction related expenses and
repositioning related (gains) charges. Additionally, these non-GAAP
financial measures exclude income and expense items that impacted
Net Income and Earnings per Diluted Share such as the impact of
pension non-service costs. These items are not incurred in all
periods, the size of these items is difficult to predict, and none
of these items are indicative of the operations of the underlying
businesses. We believe that non-GAAP financial measures that
exclude these items provide investors with an alternative metric
that can assist in predicting future earnings and profitability
that are complementary to GAAP metrics.
- "Adjusted EBITDA" adds back to net income: net interest
expense, income tax expense, depreciation and amortization,
miscellaneous income, net, and Special Items including transaction
related expenses. "Adjusted EBITDA Margin" is calculated as
adjusted EBITDA divided by net sales. We believe that adjusted
EBITDA and adjusted EBITDA margin provide investors with an
alternative metric that may be a meaningful indicator of our
performance and provides useful information to investors regarding
our financial conditions and results of operations that is
complementary to GAAP metrics.
- “Free Cash Flow” and “Adjusted Free Cash Flow” provide
supplemental information to assist management and investors in
analyzing the Company’s ability to generate liquidity from its
operating activities. The measure of free cash flow does not take
into consideration certain other non-discretionary cash
requirements such as, for example, mandatory principal payments on
the Company’s long-term debt. Free Cash Flow is calculated as cash
provided by operating activities less capital spending. Adjusted
Free Cash Flow is calculated as Free Cash Flow adjusted for certain
cash items which we believe may complicate the interpretation of
the Company’s underlying free cash flow performance such as certain
transaction related cash flow items related to the separation
transaction, acquisitions and the divestiture of asbestos-related
assets and liabilities. These items are not incurred in all
periods, the size of these items is difficult to predict, and none
of these items are indicative of the operations of the underlying
businesses. We believe that non-GAAP financial measures that
exclude these items provide investors with an alternative metric
that can assist in predicting future cash flows that are
complementary to GAAP metrics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240129684813/en/
Jason D. Feldman Vice President, Treasury & Investor
Relations 203-363-7329 www.craneco.com
Grafico Azioni Crane (NYSE:CR)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Crane (NYSE:CR)
Storico
Da Gen 2024 a Gen 2025
